XboxLayoffsStudio Closures
Xbox Layoffs Loom: Undead Labs at Risk as Devs Demand Worker Protections
Microsoft's Xbox gaming division is bracing for what could be a wave of massive layoffs this summer, with multiple first-party studios reportedly in the crosshairs. According to reports, Undead Labs — the Seattle-based developer behind the State of Decay franchise — is at risk of closure, joining a growing list of studios said to be facing the axe that includes Double Fine, Compulsion Games, and Ninja Theory. The timing is particularly striking for Undead Labs, as the news comes just weeks after State of Decay 3 was revealed for PlayStation 5, raising serious questions about the future of the project should the studio be shuttered or sold.
Jun 30, 2026
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